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Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades.

Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated August 5, 2020

What is an Insider?

An insider is an employee, director or any other person who is privy to confidential, nonpublic information about a company.

How Does an Insider Work?

Given their position, managers and executives within a company are privy to information about a company's operations that is not available to the investing public. The news and details of an upcoming merger or special dividend that have not yet been announced are two examples of insider information. Once information has been made public by the company, it is no longer considered "insider" information.

Why Does an Insider Matter?

Individuals with access to insider information have an unfair advantage in the market. Using this information to base a trade is an illegal practice known as "insider trading."

It is also illegal for a person with insider information to pass it to a third party so that they may use the information to profit.

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Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Insider, then please ask Paul.

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